Intraday trading analysis (tips) on GBP/JPY for 25 February 2011, we recommend Long (Buy) GBP/JPY Above 131.75 for target of 132.25 and 132.75 keep stop loss below 131.35.
Why to go Long: This pair has been trading lower but now its near 200 DMA, the pair seem to take the support near 131.05 and is likely to rebounding from this strong support level. But one must wait for any rebound before entering into the trade, as trading against the trend will result in loss. So once the rebound takes place, on can go long on GBP/JPY pair. Technical indicators are bearish, indicating traders to stay cautious.